In May 2021, President Biden issued Executive Order to address these and other climate-related financial risks. State insurance regulators and the NAIC are increasingly focused on incorporating climate-related risks into supervision and regulation. Treasury looks forward to working in collaboration with the NAIC and state insurance regulators on these efforts. It also helps to further our understanding of how climate-related financial risks can affect financial stability through exposures to the broader financial system, including housing markets and the banking sector. Assessing climate-related insurance market disruptions requires comprehensive assessments that pair high-quality socioeconomic and real estate information with granular insurance data.

Source: Wall Street Journal June 28, 2023 17:43 UTC